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Israel’s Vital Tech Sector to Gain From Return of Army Reservists

Employees of StoreDot, an Israeli company that has developed extreme fast charging electric vehicle batteries, work in a laboratory in Herzliya, Israel, Oct. 2, 2023. Photo: REUTERS/Amir Cohen

Israel‘s wartime economy will get a much-awaited boost as the military gradually releases reservists fighting in the Gaza Strip so they can return to their jobs and jump-start softening growth.

Since the Oct. 7 attacks by the Palestinian terrorist group Hamas, more than 300,000 Israelis were drafted to reserve duty — many coming from the globally-important high-tech sector — leading to labor shortages and a gloomy national mood that hurt consumer spending and is expected to dent economic growth.

After nearly three months of intense air bombardment and a massive ground incursion, Israeli leaders have hinted that the war is entering a new phase, with a shift towards more targeted operations aimed at eliminating the Islamist group that rules Gaza and rescuing Israeli hostages.

The military accordingly is adjusting deployment plans for its forces in Gaza and other hot spots, first and foremost by starting to send reservists home — at least for a while.

It declined to share specifics about its number of forces, but said the move will “significantly alleviate economic burdens and enable them to gather strength for upcoming activities in the next year, as the fighting will persist, and their services will still be needed.”

Prior to the war, Israel was headed for solid economic growth of 3.4 percent in 2023 and 3 percent in 2024, according to the central bank. Now, the economy is headed for a fourth-quarter contraction and the Bank of Israel sees 2 percent growth this year and next, or zero growth per capita given Israel‘s fast-growing population.

Erel Margalit, who heads one of Israel‘s most active venture capital firms, Jerusalem Venture Partners (JVP), said the military made a calculated decision.

“They understand you need to go release people to go back to work because going back to work makes Israel stronger,” Margalit said. “Israel is not only strong militarily.”

START-UPS

With inflation easing, the Bank of Israel cut short-term borrowing rates by 25 basis points to 4.5 percent on Monday, its first reduction in nearly four years. The central bank’s policy makers are keeping an eye on the military’s strategy.

The release of reservists will benefit consumer spending, said deputy central bank chief Andrew Abir, which accounts for more than 50 percent of total economic activity.

“People were called up with no warning. In the first month, there was a real mess, because they were in the middle of projects,” Abir told Reuters, referring mainly to high-tech firms.

Spouses who may have been caring for their families alone since October will also be able to return fully to their employment, he said. This is good news for the high-tech sector, which accounts for 12 percent of employment, more than half of Israel‘s exports, 25 percent of income taxes, and nearly a fifth of its overall economic output.

Other signs of economic recovery in real-time data are emerging. Credit card purchases have returned to pre-war levels, Abir said, in “a sign the economy is functioning again.”

Foreign investment, while it has slowed, has not dried up. Startups raised $1.5 billion in the final three months of 2023 in 75 deals, according to data published last week. In 2023, funding fell to $7 billion from $16 billion in 2022.

Geopolitical risks may be off-putting, but they also offer a bigger potential upside, said JVP’s Margalit.

“There are some very good deals to be had,” he said.

Larger, well-funded tech firms have mostly weathered the war, and some have even thrived. Smaller companies, especially those that were hoping to close early financing rounds when the war broke out, have had a harder time.

In some cases, Margalit said, JVP and partner investors have had to inject more funds into these firms in order to “extend the runway.”

STATE SUPPORT

Pini Yakuel, CEO of marketing data firm Optimove, said they saw strong growth in the fourth-quarter despite having 41 of 240 workers in Tel Aviv drafted for reserve duty.

“We’ve adapted. It’s a new reality,” he said. “We just kind of, like, pressed on. Focused on what’s most important. Some things were paused, some things were delayed, but you continue to execute.”

His company put non-critical projects on hold and relied on offices abroad to help cover the load. And things will get easier as the absent employees slowly return.

“I notice in the office: ‘Oh hey, you’re back.’ ‘Yeah, I’m back.’ ‘Is it for good?’ ‘No, for the next month. Then they’re gonna tell us if we need to go back [to the reserves] or not’.”

The government took steps to protect the sector. State-funded Israel Innovation Authority set up a $100 million fund to help early stage startups.

In its recent survey, half of young companies only had sufficient funding for six months, said Dror Bin, the authority’s CEO. His fund has invested about $41 million so far.

“We all got our act together,” Bin said. “CEOs and employees realized that if they want to sustain the company’s success and their jobs they needed to refocus themselves on work.

“Despite all the empathy we get from the tech industry globally, at the end of the day when customers abroad need to get deliveries they can’t say that they didn’t get the deliveries because of the war in Israel,” he said.

($1 = 3.6437 shekels)

The post Israel’s Vital Tech Sector to Gain From Return of Army Reservists first appeared on Algemeiner.com.

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US Clamps Sanctions on Israel-bashing UN Rights Monitor Albanese

Francesca Albanese, UN special rapporteur on human rights in the Palestinian territories, attends a side event during the Human Rights Council at the United Nations in Geneva, Switzerland, March 26, 2024. Photo: REUTERS/Denis Balibouse

The Trump administration has imposed sweeping sanctions against Francesca Albanese, the United Nations Special Rapporteur for the Occupied Palestinian Territories, citing the UN official’s lengthy record of singling out Israel for condemnation.

In a post on X, US Secretary of State Marco Rubio announced the sanctions under a February executive order targeting those who “prompt International Criminal Court (ICC) action against U.S. and Israeli officials, companies, and executives.” He accused Albanese of waging “political and economic warfare” against both nations and asserted that “such efforts will no longer be tolerated.”

“Today I am imposing sanctions on UN Human Rights Council Special Rapporteur Francesca Albanese for her illegitimate and shameful efforts to prompt [International Criminal Court] action against U.S. and Israeli officials, companies, and executives,” Rubio announced on X/Twitter.

“Albanese’s campaign of political and economic warfare against the United States and Israel will no longer be tolerated,” declared the Trump administration’s top foreign affairs official. “We will always stand by our partners in their right to self-defense.”  

Rubio concluded: “The United States will continue to take whatever actions we deem necessary to respond to lawfare and protect our sovereignty and that of our allies.”

The decision to impose sanctions on Albanese marks an escalation in the ongoing feud between the White House and the United Nations over Israel. The Trump administration has repeatedly accused the UN and Albanese of unfairly targeting Israel and mischaracterizing the Jewish state’s conduct in Gaza. 

Albanese, an Italian lawyer and academic, has held the position of UN special rapporteur on human rights in the Palestinian territories since 2022. The position authorizes her to monitor and report on alleged “human rights violations” by Israel against Palestinians in the West Bank and Gaza. 

Last week, Albanese issued a scathing report accusing companies of helping Israel maintain a so-called “genocide economy.” She called on the companies to cut off economic ties with Israel and warned that they might be guilty of “complicity” in the so-called “genocide” in Gaza. 

Critics of Albanese have long accused her of exhibiting an excessive anti-Israel bias, calling into question her fairness and neutrality.

Albanese has an extensive history of using her role at the UN to denigrate Israel and seemingly rationalize Hamas’ attacks on the Jewish state.

In the months following the Palestinian terrorist group’s atrocities across southern Israel on Oct. 7, 2023, Albanese accused the Jewish state of perpetrating a “genocide” against the Palestinian people in revenge for the attacks and circulated a widely derided and heavily disputed report alleging that 186,000 people had been killed in the Gaza war as a result of Israeli actions. 

The action comes as Israeli Prime Minister Benjamin Netanyahu visits Washington, where he has received a warm reception from the Trump administration. Netanyahu has been meeting with US officials to discuss next steps in the ongoing Gaza military operation. 

Gideon Sa’ar, Minister of Foreign Affairs for Israel, commended the Rubio announcement with his own post on X/Twitter, exclaiming: A clear message. Time for the UN to pay attention!” 

The post US Clamps Sanctions on Israel-bashing UN Rights Monitor Albanese first appeared on Algemeiner.com.

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Hardball: Trump Administration Reports Harvard to Accreditor Over Antisemitism Allegations

US President Donald Trump speaks during a Cabinet meeting at the White House in Washington, DC, July 8, 2025. Photo: Kevin Lamarque via Reuters Connect.

The Trump administration escalated its showdown against Harvard University on Wednesday, reporting the institution to its accreditor for alleged civil rights violations resulting from its weak response to reports of antisemitic bullying, discrimination, and harassment following Hamas’ Oct. 7, 2023 massacre across southern Israel.

The US Department of Education (DOE) announced the action on Wednesday. Citing Harvard’s admitted failure to treat antisemitism as seriously as it treated others forms of hatred in the past, the DOE called on the New England Commission of Higher Education to review and, potentially, revoke its accreditation — a designation which qualifies Harvard for federal funding and attests to the quality of the educational services its provides.

“Accrediting bodies play a significant role in preserving academic integrity and a campus culture conducive to truth seeking and learning,” said Secretary of Education Linda McMahon. “Part of that is ensuring students are safe on campus and abiding by federal laws that guarantee educational opportunities to all students. By allowing anti-Semitic harassment and discrimination to persist unchecked on its campus, Harvard University has failed in its obligation to students, educators, and American taxpayers.”

The DOE, McMahon added, “expects the New England Commission of Higher Education to enforce its policies and practices, and to keep the Department fully informed of its efforts to ensure that Harvard is in compliance with federal law and accreditor standards.”

As previously reported by The Algemeiner, Harvard’s Presidential Task Force on Combating Antisemitism has acknowledged that the university administration’s handling of campus antisemitism fell well below its obligations under both Title VI of the Civil Rights Act of 1964 and its own nondiscrimination policies.

In a 300-plus-page report, the task force compiled a comprehensive record of antisemitic incidents on Harvard’s campus in recent years — from the Harvard Palestine Solidarity Committee’s endorsement of the Oct. 7 terrorist atrocities to an anti-Zionist faculty group’s sharing an antisemitic cartoon depicting Jews as murderers of people of color. The report identified Harvard’s past refusal to afford Jews the same protections against discrimination enjoyed by other minority groups as a key source of its problem.

Coming several weeks after President Donald Trump ordered the freeze of $2.26 billion in federal research grants and contracts for Harvard, the task force report found it was “clear” that antisemitism and anti-Israel bias have been fomented, practiced, and tolerated not only at Harvard but also within academia more widely.”

The university is now suing the federal government over the funding halt.

President Trump has spoken scathingly of Harvard, calling it, for example, an “Anti-Semitic, Far Left Institute … with students being accepted from all over the world that want to rip our Country apart” in an April post to his Truth Social platform.

In recent weeks, however, both Trump and McMahon had commended Harvard’s constructive response in negotiations over reforms the administration has asked it to implement as a precondition for restoring federal funds. The requested reforms include hiring more conservative faculty, shuttering diversity, equity, and inclusion [DEI] programs, and slashing the size of administrative offices tangential to the university’s central educational mission.

The administration has since changed its tone in the wake of a report by The Harvard Crimson that interim Harvard President Alan Garber has said “behind closed doors” that he has no intention of doing anything that would make Harvard more palatable to conservatives.

Earlier this month, the Trump administration’s Joint Task Force to Combat Antisemitism issued Harvard a formal “notice of violation” of civil rights law. Charging that Harvard willfully exposed Jewish students to a flood of racist and antisemitic abuse both in and outside of the classroom, it threatened to strip whatever remains of Harvard’s federal funding.

“Failure to institute adequate changes immediately will result in the loss of all federal financial resources and continue to affect Harvard’s relationship with the federal government,” wrote the federal officials comprising the multiagency Task Force. “Harvard may of course continue to operate free of federal privileges, and perhaps such an opportunity will spur a commitment to excellence that will help Harvard thrive once again.”

In Wednesday’s announcement, US Department of Health and Human Services Secretary Robert F. Kennedy Jr. said Harvard’s conduct “forfeits the legitimacy that accreditation is designed to uphold.”

“HHS and Department of Education will actively hold Harvard accountable through sustained oversight until it restores public trust and ensures a campus free of discrimination,” he said.

Follow Dion J. Pierre @DionJPierre.

The post Hardball: Trump Administration Reports Harvard to Accreditor Over Antisemitism Allegations first appeared on Algemeiner.com.

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IDF Strikes Hezbollah Sites in South Lebanon as Terror Group Pushes to Rebuild Amid US Disarmament Talks

IDF operating in southern Lebanon. Photo: IDF Spokesperson

Israeli forces uncovered and destroyed Hezbollah weapons caches in southern Lebanon on Wednesday, as a new report indicated that despite ongoing U.S.-led efforts to secure a disarmament deal, the Iran-backed group is making repeated, largely concealed attempts to rebuild its military presence in the area.

Troops carried out several operations targeting Hezbollah infrastructure in southern Lebanon on Wednesday morning, destroying weapons depots, explosives and multibarrel launchers concealed in forested terrain, the IDF said, in violation of the November ceasefire, which requires Hezbollah to withdraw its forces 20 miles from the Israeli border.

A new report released this week by the Alma Research and Education Center found that Hezbollah is focused on rebuilding in three areas: operational deployment, weapons acquisition, and financial recovery. 

“Hezbollah didn’t give up its resistance narrative and motivation,” Alma’s director, Lt. Col. (Res.) Sarit Zehavi, told The Algemeiner

“It wants to rebuild its capabilities and infrastructures, whether it’s the villages that will be used as human shields or the military infrastructure in South Lebanon and in Lebanon in general.”

According to Zehavi, Hezbollah is attempting to return Radwan fighters to positions south of the Litani River as part of a wider plan to restore its elite forces to operational readiness. The IDF on Monday killed Radwan commander Ali Abd al-Hassan Haidar in a targeted strike. The action came hours after US Special Envoy for Syria Thomas Barrack met with Lebanese President Joseph Aoun, Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri in Beirut to discuss a long-term deal that would include an Israeli withdrawal and complete disarmament of Hezbollah.

Barrack described the Lebanese response to the proposal as positive. Later, he issued a blunt warning to Hezbollah in response to a vow by the terror group’s leader, Naim Qassem, not to lay down its arms. “If they mess with us anywhere in the world, they will have a serious problem with us,” Barrack said in an interview with Lebanese news network LBCI. “They don’t want that.” 

Zehavi said it was premature to predict the outcome of the diplomatic efforts. She warned that the challenge of disarming Hezbollah remains enormous and emphasized that the Lebanese Armed Forces have not demonstrated the capability or willingness to confront the group.

“It’s too soon to be optimistic or pessimistic,” she said, noting that no firm commitments have emerged from the Beirut talks. 

Hezbollah’s efforts to smuggle and manufacture weapons have been complicated by both Israeli strikes and the regional realignment over recent months. While Israeli strikes have disrupted many supply routes, according to Zehavi, Syrian authorities have intercepted far more Hezbollah-bound weapons than the Lebanese Army, which claims to have uncovered 500 arms caches but has provided no evidence.

The financial front marks the third aspect of Hezbollah’s rebuilding effort. Last week, the group halted cash payments to Shiite civilians whose homes were damaged in the war, citing liquidity problems. Zehavi attributed the shortfall to disruptions in Iran’s funding networks — an outcome of the 12-day war against the regime in Tehran — and said the constraints would likely hamper Hezbollah’s ability to compensate its base and sustain operations. 

“I hope they will continue to have problems with the cash flow, that way it will be very difficult for them to recover,” she said.

The post IDF Strikes Hezbollah Sites in South Lebanon as Terror Group Pushes to Rebuild Amid US Disarmament Talks first appeared on Algemeiner.com.

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